Key takeaways:
- The office of US President Joe Biden has informed legislators and the general public that his administration intends to veto crypto policy.
- The Democratic and Republican heads of the House Financial Services Committee discussed the resolution on the House floor.
Legislators and the general public have been informed by the office of US President Joe Biden that, should a joint resolution about cryptocurrency policy at the Securities and Exchange Commission (SEC) arrive before his desk, his administration intends to veto it.
The White House said in a statement on May 8 that it “strongly opposes” House of Representatives members attempting to pass a joint resolution that would, in its opinion, interfere with the SEC’s work to defend investors in cryptocurrency asset markets and the larger financial system.
Introduced in the House in February, H.J.Res. 109 would repeal Staff Accounting Bulletin (SAB) No. 121 of the SEC, which mandates that banks retain capital maintained against their customers’ digital assets on their balance sheets. The Biden administration stated:
“SAB 121 was issued in response to demonstrated technological, legal, and regulatory risks that have caused substantial losses to consumers,”
On May 8, the Democratic and Republican heads of the House Financial Services Committee discussed the resolution on the House floor.
Republican Representative Patrick Henry pleaded with lawmakers to back H.J.Res. 109, asserting that SAB 121 gave the SEC the authority to direct how businesses and financial institutions protect the digital assets of Americans. Congressman McHenry stated:
“If you want Americans to be able to engage with digital assets safely and securely, banks — which are some of the most regulated businesses in our country — are probably the best way,”
The ranking member of the House committee and Democrat Representative Maxine Waters rejected the joint resolution, arguing that the SEC accounting rule had increased openness in the digital asset market.
She referred to McHenry’s attempts as “partisan” and “harmful” and restated the SEC advisory’s assertion that the rule was meant to address “unique risks and uncertainties” related to cryptocurrency.
Following the House’s deliberations, during which H.J.Res. 109 seemed to pass by a voice vote, Representative McHenry requested a tally of the yes and no votes.
The House chair put the resolution’s discussion on hold until later. Under the US Constitution, a two-thirds majority vote in the House would be required to overcome President Biden’s veto.
